Woolworths ups discounts to encourage loyalty

Members of Woolworths’ Everyday Rewards scheme who scan their rewards card each time they shop will receive discounts of as much as 50 per cent on more than 1000 popular grocery products.
Photo: Glenn Hunt

The customer battle between
Woolworths
and Coles has moved up a gear, with Woolworths offering loyalty card holders “exclusive" discounts on selected groceries.

Members of Woolworths's Everyday Rewards scheme who scan their rewards card each time they shop will receive discounts of as much as 50 per cent on more than 1000 popular grocery products.

The promotion comes two weeks after Woolworths unveiled another round of “permanent" price reductions of up to 30 per cent on hundreds of grocery products in a bid to boost foot traffic and sales.

Woolworths's supermarkets managing director, Tjeerd Jegen, said the retailer had analysed customer shopping data to determine which products mattered most to its seven million loyalty card holders.

“We’ve turned that data into customer rewards by working with our suppliers to offer great specials on those products," Mr Jegen said.

Products included in the promotion, known as ‘Extra Special Savings’, will be refreshed every two weeks.

The targeted promotions are designed to lift basket size amongst existing customers, reduce the rate of “cross shopping" and increase the effectiveness of promotions.

The Australian grocery market has one of the lowest rates of customer loyalty in the world. Only about 9 per cent of consumers shop exclusively at Woolworths and only 7 per cent exclusively at Coles, according to recent Roy Morgan research. More than 30 per cent shop at Woolworths, Coles and independent retailers.